PETALING JAYA: Dutch Lady Milk Industries Bhd
is making its way into the fresh milk segment with a RM17.5mil cash acquisition of a 35% stake in Jemaluang Dairy Valley Sdn Bhd (JDV) from Kulim (M) Bhd.
In a filing with Bursa Malaysia yesterday, Dutch Lady said it had entered into a conditional share sale agreement with Kulim and A2 Fresh Holdings Sdn Bhd to acquire 14.49 million JDV shares. A joint-venture agreement among the parties was also signed yesterday.
JDV is the anchor company of a dairy project in Sungai Ambat, Jemaluang, Mersing, Johor, developed in collaboration with the East Coast Economic Region Development Council.
Its farm began operations in 2025 and currently has 1,000 milking cows, a number expected to double to 2,000 by 2030.
The company also plans to build a production facility with an annual capacity of 16 million to 20 million litres of pasteurised milk by 2027.
Dutch Lady said the deal would give it access to the fresh milk segment and strengthen its position in the ready-to-drink milk market, which is expected to be increasingly driven by fresh milk.
The acquisition will be funded through internal funds. Completion is subject to several conditions, including approvals from the council, the Johor government and MBSB Bank Bhd.
Dutch Lady must also provide a RM24mil corporate guarantee to MBSB Bank, proportionate to its stake, in relation to JDV’s RM68mil term financing facility.
It will enter into agreements for JDV to supply raw milk to the group and for Dutch Lady to distribute JDV’s finished products.
